NFT Market Cap Rockets to $6.6B in July – CryptoPunk Fetches $5M in Jaw-Dropping Sale

NFTs are flexing again—hard. The market cap just blasted past $6.6 billion this month, and a single CryptoPunk just sold for a cool $5 million. Is this a comeback or another hype cycle?

Big Money, Big Questions

That $5 million sale isn’t just a transaction—it’s a statement. Either NFTs are back in vogue, or whales are dumping liquidity into digital art because traditional markets are… well, let’s not go there.

The Fine Print

Remember when skeptics called NFTs dead? July’s numbers scream otherwise. But with every surge comes the inevitable question: sustainable growth or speculative froth? Place your bets—Wall Street certainly is (between martini lunches).

The revival comes after the sector experienced its worst performance since the 2022 peak, with Q2 2025 trading volumes plummeting 80% to $823 million from $4 billion the previous year.

Multiple major platforms shut down their NFT operations, while the lending market collapsed by 97% from nearly $1 billion in monthly volume.

Notably, Moonbirds staged a surprising comeback with trading volume soaring 600% and floor prices up 60% following a partnership announcement with Towns and acquisition by Orange Cap Games.

Art Blocks also returned to prominence, with average sale prices jumping 156% after platform improvements and the introduction of new collector features.

Blue-Chip Collections Drive Market Revival

CryptoPunks emerged as the standout performer with a 53% floor price increase, reclaiming its position as the Gold standard of Web3 status symbols.

The collection remains one of the most actively traded despite being a free mint from 2017, with each market revival pulling Punks back into the spotlight.

Pudgy Penguins officially surpassed Bored APE Yacht Club by market capitalization, with floor prices up 539% since mint and gaining an additional 7% this week alone.

The collection now sits directly behind CryptoPunks in the market hierarchy, having built consistently during the bear market.

The collection expanded across Asia, featuring plush toys that bridged Web2 and Web3 experiences, delivering real-world utility and resonating with the collectibles HYPE cycle.

Art Blocks experienced a quiet yet significant comeback, entering the top-traded collections for the first time in months.

The platform launched Collector Profiles, wallet aggregation, achievements, and improved user experience on July 10, sparking renewed interest in top-tier projects like Fidenza.

Profile picture NFTs dominated the category, accounting for 37% of the total volume, followed by Real-World Assets at 11%.

Sports, Music, and Fashion NFTs failed to catch momentum, while Gaming NFTs cooled off after a solid Q2 performance.

The revival pattern mirrors historical cycles where PFPs and Art categories lead market recoveries, with fewer trades at higher prices replacing the volume-driven activity of previous periods.

Telegram NFTs and Regulatory Clarity Fuel Optimism

According to a report Cryptonew covered earlier this month, Snoop Dogg’s NFT collection sold out completely within 30 minutes on Telegram, generating over $12 million in sales and nearly one million unique NFT purchases.

@SnoopDogg's digital collectibles explode with $12M in 30 minutes via Telegram as TON blockchain NFT market cap surges to $200M sparking major comeback speculation.#SnoopDogg #NFT #TONhttps://t.co/4SEvevUEzR

Telegram founder Pavel Durov announced that blockchain minting capabilities and secondary market functionality WOULD launch within 21 days.

The Telegram NFT Gifts market reached $200 million capitalization in June, with daily trading volumes exceeding $8 million.

Recent launches included Crystal Eagles, which sold 15,000 pieces at $100 each within 45 seconds, while 300,000 Statues of Liberty sold out in under five minutes.

Bored Ape Yacht Club announced plans to launch Bored Ape Originals sticker packs on Telegram, lending credibility to the TON ecosystem.

Other prominent collections, including Pudgy Penguins, Doodles, and Moonbirds, expressed interest in deploying NFT sticker collections.

The market shift coincides with regulatory clarity from SEC Commissioner Hester Peirce, who confirmed many NFTs do not qualify as securities, including those with creator royalty mechanisms.

The SEC crypto Task Force, under her leadership, has been providing clearer regulatory guidance for digital assets through multiple roundtables and industry engagement.

Appeals court overturns @yugalabs $9 million BAYC victory against @ryder_ripps ordering jury trial on consumer confusion in landmark trademark case.#YugaLabs #RyderRipps #NFTshttps://t.co/YMIq1BZbJu

Most recently, the Ninth Circuit Court of Appeals established important precedent by affirming that NFTs can be trademarked as goods under the Lanham Act, distinguishing them from intangible content in physical products.

The ruling confirmed that NFTs function as membership passes and source-identifying assets in commercial markets.